At the Multi Commodity Exchange, gold for delivery in December fell by Rs 84, or 0.27 percent, to Rs 30,977 per 10 grams, with a business turnover of 1,867 lots.

Similarly, the yellow metal for delivery in February lost Rs 82, or 0.26 percent, to Rs 31,240 per 10 grams, with a business turnover of 90 lots.

Marketmen said speculators offloaded positions amid a weak global trend amid concern that the economy is slowing and China may refrain from additional economic stimulus, curbing demand for the precious metal, leading to a fall in gold futures prices here.

Meanwhile, gold dropped 1.3 percent to USD 1,737.60 an ounce in New York last night.